A major investor shifted money into tokenized gold this week, and Bitcoin felt the impact. Prices fell as a whale quietly bought millions in XAUT, a gold-backed token, signaling a short-term move toward traditional hedges.
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Whales turn to tokenized gold
According to on-chain trackers, one address moved $1.53 million in USDC to Hyperliquid to buy XAUT. Reports indicate that the same wallet had previously purchased approximately 481 XAUT, a purchase worth approximately $2.38 million.
The address still contains nearly $1.44 million in USDC, suggesting more purchases could follow. These moves were picked up on public blockchains and then flagged by analysts watching for large transfers.
This kind of action can matter. When big players shake cash, smaller traders often take notice and hedge their bets. The shift isn’t evidence of a long-term trend, but it does show that, at least for now, some big investors prefer stocks gold exposure above additional crypto risk.
Whales buy gold, not crypto.
~30 minutes ago whale 0x6B99 deposited 1.53 million $USDC in Hyperliquid to purchase $XAUT again.
He has already bought 481.6 $XAUT($2.38 million) and still has 1.44 million $USDCwhich can be used to buy more $XAUT.https://t.co/0uV2kNEiD0 pic.twitter.com/rYA09b1OEn
— Lookonchain (@lookonchain) January 23, 2026
Gold and silver reached new highs
Reports say gold has risen sharply, with the spot price rising to almost $5,000 an ounce in global trading this week. Silver also rose above $100 an ounce, with intraday gold pushing around $4,988 before settling.
Traders are linking the rise to geopolitical tensions and the idea that interest rates could fall, driving money into metal-based stores of value.
A weaker dollar has also helped. The market chatter points to increased demand as investors seek more stable places to park capital while global politics and policy choices add to concerns.
Bitcoin’s Price Action and Market Mood
Bitcoin was trading around $88,653 at one point, leaving it down about 1% on the day and almost 30% below the previous cycle top. That gap is big. Market participants are wondering whether BTC will remain the go-to hedge in times of high stress. Some long-term owners remain confident. Others are closely monitoring liquidity and macro signals.
Reports have revealed renewed criticism from economist Peter Schiff, who argued that Bitcoin has underperformed gold since 2021.
He highlighted the opportunity cost for investors holding BTC as metals soar to record prices. Schiff wrote on social platforms that precious metals are outperforming and that this weak run for Bitcoin, in the eyes of some, weakens its role as a store of value.
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What this means for crypto investors
Such short-term rotations often reflect risk preferences rather than permanent shifts. Some funds and high-net-worth individuals look for lower-volatility assets when the headlines get louder and policy paths seem uncertain.
Others still view Bitcoin as a long-term play tied to scarcity and network effects. The current picture is a mix: metals are strong, tokenized gold is attracting attention and crypto markets are reacting.
Featured image from Pexels, chart from TradingView